välisinvesteeringutel

Välisinvesteeringutel is an Estonian term that translates to "foreign investment" in English. It refers to the acquisition of assets or businesses in a country by individuals or companies from another country. Foreign investment can take various forms, including direct investment (FDI) and portfolio investment.

Foreign Direct Investment (FDI) involves an investor establishing a significant interest or control over an enterprise in a foreign country. This can manifest as setting up a new business, acquiring an existing one, or expanding operations of an existing foreign-owned subsidiary. FDI is often seen as a more substantial and long-term commitment compared to portfolio investment.

Portfolio investment, on the other hand, involves the purchase of financial assets in a foreign country, such as stocks, bonds, or other securities, without necessarily seeking to control or manage the enterprise. These investments are typically more liquid and can be made with the primary goal of financial return rather than operational control.

Countries actively seek foreign investment for several reasons. It can stimulate economic growth, create jobs, introduce new technologies and management expertise, and boost competition. Foreign investment can also help finance domestic projects and improve a country's balance of payments. However, concerns can also arise, such as potential impacts on domestic industries, repatriation of profits, and the influence of foreign entities on national policy. Estonia, like many nations, has policies in place to attract and regulate välisinvesteeringutel.